MedMen stock is down over 5% today despite MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) announcing the opening of its fifth store in Florida.
MedMen Stock Nears Two-Year Low
MedMen Enterprises announced the opening of a new retail location in Jacksonville, Florida, bringing its number of brick-and-mortar storefronts in the Sunshine State to five and 30 nationwide. MedMen is licensed to operate up to 35 stores in Florida and plans to open an additional seven by the end of the year. Despite the continued expansion, MedMen shares are currently trading at $1.50, close to a two-year low.
MedMen's recently announced loyalty program, MedMen Buds, will be available to Jacksonville patients immediately, while its delivery service, which is already operational in Nevada, will launch in Florida before the end of the year. Also today, MedMen has reiterated its support for the "Make It Legal Florida" campaign, which aims to bring safe and regulated legal cannabis to adults over 21 in Florida. MedMen stock dropped earlier this month after the company announced its membership in this campaign.
Struggle to Recover From Scrapped PharmaCann Deal
MedMen stock is currently hovering around a two-year low today as it struggles to recover from the termination of its proposed PharmaCann takeover. The company cited numerous reasons for the collapse of this deal, including market underperformance, regulatory hurdles, and the company’s increased focus on California. Under the termination, MedMen Enterprises will forgive approximately $21 million USD in debt in exchange for the transfer of assets relating to three entities in Illinois and Virginia.
While pot stocks across the board are trading in the green today, after a poor close last week following HEXO Corp's (TSX:HEXO) (NYSE:HEXO) withdrawn guidance, MedMen stock's movement is more internalized and broader optimism in the market today is not enough to lift it out of the doldrums. Financial mismanagement led to several high profile resignations earlier this year, with the company burning through $184 million USD for the nine months ended March 30.
Investors will get a fuller picture of where MedMen is at when the company releases its year-end results later this month. Can the continued expansion into Florida turn MedMen stock around?
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